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INTEGRATED WASTE PROGRAM Cost Analysis

INTEGRATED WASTE PROGRAM Cost Analysis. CURRENT REVENUE FY 2011 - Residential Trash Pickup $9,102,918 - Pine Grove $ 220,973 - Granite Bluff $ 59,065 - Oxbow Meadows $ 1,678 - Commercial Stickers $ 63,232 - Downtown Bag Stickers $ 3,250

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INTEGRATED WASTE PROGRAM Cost Analysis

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  1. INTEGRATED WASTE PROGRAMCost Analysis

  2. CURRENT REVENUE • FY 2011 • - Residential Trash Pickup $9,102,918 • - Pine Grove $ 220,973 • - Granite Bluff $ 59,065 • - Oxbow Meadows $ 1,678 • - Commercial Stickers $ 63,232 • - Downtown Bag Stickers $ 3,250 • - Veterinarian Stickers $ 2,225 • Recycling $ 270,189 • Total: $9,723,530

  3. Cost of Pickup per Household • 2011 • Solid Waste Collection $5,966,778 • Recycling Collection $1,061,735 • Subtotal $7,028,513 • Equipment replacement: 10 vehicles/yr • 10 x $200K = $2,000,000 • $9,028,513 • - With 55,000 customers • $164.15/hh/yr or $13.68/hh/month

  4. Cost of Landfill Operation per Household Pine Grove $1,934,813 Oxbow Meadows $ 204,378 Granite Bluff $ 277,837 Subtotal $2,417,028 2 additional personnel $ 80,000 Equipment replacement $ 631,000 $3,128,028 divided by 55,000 hh customers = $56.87/hh/yr or $4.74/hh/month

  5. Infrastructure Value Using Phase IV For Current Value Land value $ 2,000,000 40 acres @ $50k Construction Cost (est.) $ 4,400,000 Engineering & Permitting $ 50,000 Closure & Post (est.) $ 3.600,000 $10,050,000 Capacity roughly 1.9M CY

  6. Infrastructure Value • Cont’d • 1,900,000 CY • - 475,000 CY (25% cover) • 1,425,000 CY usable capacity • 151,210 CY/yr - Current usage rate/putrescible • 9.4 years useful life at current usage rate • $10,050,000 divided by 1,425,000 cy = $7.05 /CY • $7.05 /CY x 1 CY/0.42 tons = $16.79/ton

  7. Landfill Timeline • Satilla closure ($5.4M) • 2013 Build Phase IV – Pine Grove ($4.4M) • 2015 Start wetlands mitigation for C & D – Pine Grove • 2019 Start design of Phases V & VI – Pine Grove • (Approx: $100,000) • 2019 Oxbow Closure • 2023 Phase 1 – IV Closure – Pine Grove ($10M) • Need new C & D landfill – Pine Grove (unknown) • 2033 Granite Bluff Closure • Phase V & VI closure – Pine Grove ($5M)

  8. 2011 Tonnage By Type Residential Commercial Tons Tons Putrescible 57,297 5,681 Inert Granite Bluff 13,192 15,900 Oxbow Meadows 9,932 5,689 Construction C & D -- 4,543 Special Handling -- 1,054 Total: 80,421 32,867 Total Tonnage: 113,288 tons/yr or 269,733 CY/yr

  9. Disposal Costs • Operating Costs = • $3,128,028 divided by 113,288 tons/yr = $27.61/ton • - Infrastructure Value - Present $16.79/ton • Subtotal: $44.40/ton • - Infrastructure Value - Future $16.79/ton • Total: $61.19/ton

  10. Residential Infrastructure Values • $7.05 /CY or $16.79 /Ton • 80,421 Tons/yr X $16.79/ton = $1,350,269/yr • divided by 55,000 hh = $ 24.55/hh/yr = • $2.05 /hh/month

  11. Real Cost Per Month For Residential Service Collection $13.68 Landfill Operations $ 4.74 Infrastructure Value - Present $ 2.05 _____________________ Subtotal: $20.47/month Infrastructure Value - Future $ 2.05 _____________________ Total: $22.52/hh/month

  12. Real Costs - 2011 • Recycling Center $ 138,422 • Pick Up $9,028,513 • Landfill Operations $3,128,028 • Landfill Ownership - Current $1,902,106 • Future $1,902,106 • $15,960,753 • 2011 Revenue - $9,723,530 • Shortfall - $5,366,575

  13. TERMINOLOGY • - PARTICIPATION RATE: • Number of households that recycle = roughly 55% • DIVERSION RATE • Amount collected that does not go into the landfill • Current • 12.8% • Goal by 2015 • 40%

  14. Diversion Rate • Currently only 3.9% of household waste by weight is • recycled or diverted • 2011 Tons • Household Waste 62,978 • Recycling 2,482* • Inert Diverted 11,852* • Inert Landfilled 32,851 • Construction 4,543 • Tires 241* • Metal 130* • Total: 115,077 • * Tons diverted 14,705

  15. Savings From 40% Household Diversion/Recycling • - Cost Avoidance Value - Present and Future • 2 x $16.79/ton = $33.58 x 23,702 tons = $ 795,913 • - Income For Recycling • Average - $56.74/ton x 23,702 tons = $1,344,851 • $2,140,765 • Average value of diversion - $90.32/ton

  16. Value of Diversion Waste from Commercial Sources • - 40% Total Diversion means: • An additional • 22,329 tons x 33.58 = • $749,807 in Cost Avoidance • And a cost of roughly $300,000 more for grinding • contract.

  17. Recycling to 40% is only possible once single stream is available!!!

  18. RECOMMENDED ACTIONS • Landfill: • RA1 – Increase disposal fees at landfill • RA2 - Reduce/eliminate Saturday hours at landfills • RA3 - Eliminate residential limit - currently 2,000 • lbs/day • RA4 - Review/revise chipper contract • Recycling: • RA5 - Increase number of recycling drop off sites

  19. RECOMMENDED ACTIONS(Cont’d) Pick Up: RA6 - Increase fee for: Biological waste disposal for vets Commercial pickup rate Downtown per bag fee RA7 – Audit Customer billing list using GIS -Biological pickup from vets -Business stickers RA8 - Routing software RA9 – Biodegradable bags for yard waste

  20. RA1: INCREASED LANDFILL FEES • FOR CONSIDERATION • Current Recommended • Per Ton • 201320142015 • Putrescible Waste $27.50 $32.50 $37.50 $42.50 • Construction Waste $25.50 $32.50 $37.50 $42.50 • Special Handling $45.00 $50.00 $55.00 $60.00 • Metal $30.50 $30.50 $30.50 $30.50 • Tires (5 per resident free) $110.00 $110.00 $110.00 $110.00 • Yard waste $14.00 $24.00 $29.00 $34.00

  21. RA2: Reduce Saturday Landfill Hours Currently: Every Saturday 8 am to 3 pm Pine Grove – all materials Granite Bluff – inert materials Cost: $117,340 annually for manpower, equipment maintenance, electricity and fuel - Revenue: $21,529

  22. RA2: Reduce Saturday Landfill Hours(Cont’d) • Recommendation: • Open one Saturday per month 9 am to 1 pm • Pine Grove only at cost of $15,473/yr • Savings (electric & fuel): $25,957 • Cost avoidance - Equipment maintenance: $35,910 • Cost avoidance - Salary: $40,000* • Net savings - $101,867 • *Will cover one of two needed positions at Pine Grove

  23. RA3: Eliminate Resident Limits At Landfill Currently: Residents may drop off 2000 lbs free each day at inert landfills Staff cannot determine business or contractor waste from residential We already pick up everything at residents’ houses If resident still chooses to take to landfill ½ ton pick up truck load costs approximately $7 at $14/ton or $12 at $24/ton

  24. RA3: Eliminate Resident Limits At Landfill (Cont’d) • Recommendations: • Charge for everything that is brought to landfills • Estimated Revenue – assume 50% of quantity dumped free at this time • $ 14.00/ton$ 24.00/ton • -Granite Bluff $75,000 $128,570 • -Oxbow Meadows $15,000$ 25,714 • $90,000 $154,284

  25. RA4: Review/Revise Chipper Contract • - Increase volume leaving landfill from 25% to 75% or • roughly 22,000 tons more • Cost at $13.50/ton = $448,500 total or $297,000 more • Cost at $13.00/ton - $286,000 more • - Cost avoidance – • $16.79/ton x 22,000 tons total = • Infrastructure value: • Current $369,380 • Future: $369,380 • Total: $738,760

  26. RA5: More Recycling • Drop Off Points • - Currently: on 22nd Avenue • Emptied several times a day with forklift from recycling • center • Dumpsters for • Glass Cans • Plastics 1-7 Electronics • Cardboard Paper • Contributors from apartments, businesses, etc.

  27. RA5: More Recycling Drop Off Points (Cont’d) • Proposed New Locations: • Cooper Creek Park, • Georgia Welcome Center, Williams Road • Sacerdote Lane near Schatulga Road Landfill • - Equipment Needed – at a cost of: $100,000 • 8 Recycling Trailers • 1 Flat Bed for hauling • One full time position or two part time positions needed – • at a cost of: $40,000/yr • Total Cost: $140,000 • Revenue: variable with market

  28. RA6: COMMERCIAL STICKER PICKUP Current $178/year for each 32 gallon container off ROW $125/year on ROW Picked up twice weekly with residential trash Recommend charging On ROW: $240/yr for 2 cans and $120/yr for each add’l Off ROW: $320/yr for 2 cans and $180/yr for each add’l - Projected revenue increase approximately $35,000

  29. RA6: Fee For Biological Waste Pick Up & Disposal • Animal Control officer picks up road kill and visits each • veterinarian office twice per week – more often upon request • Current Fee: $178/year or $1.85/pickup • Recommended Fee: $105/month or $1260/year • Special Pick ups: $50 each • Projected Revenue Increase: $18,300 • Cost passed on to clients: $20 - $50

  30. RA6: Downtown • Per Bag Fee • Picked up every night 6 days/week • Most bags do not have stickers • Educational effort needed • Currently charging $1.25/bag • 2013 2014 2016 • $1.50 $1.75 $2.00 • Projected Revenue: $1,300 increase each year

  31. RA7: Audit Customer List • Household billing list • Ensure customers are being billed where we are • picking up • - Veterinarian biological waste pickup • - Commercial stickers – one 32 gal bin • Pick up with residential routes • Approximately 300 customers

  32. RA8: ROUTING PROGRAM Will Balance routes Reduce mileage More efficient Free up equipment and manpower to be reallocated to other uses (recycling) Cost: $80,000 - Purchase with recycling revenues or LOST technology funds

  33. RA9: Biodegradable Bags For Yard Waste - Current Situation • Plastic bags must be emptied and removed from the waste stream • Average stop – 1.5 minutes - With Biodegradable Bags • Average stop – 36 seconds • Cost of bags is approximately $0.38 each • Resources could be shifted to recycling - Yard waste can also be placed in cans - Requires ordinance change - Realized benefits: - Better for the environment!

  34. THE 800 POUND GORILLA • Two proposals have been made: • Cut trash pick up to once per week • Increase fees

  35. Cut Pick Up to • Once Per Week • Impacts pick ups but not the landfill • No change in the volume of trash • - Saves approximately $250,000

  36. Increase Fees • - Various proposals have been made to increase fees

  37. RECOMMENDATION • Adopt the 40% goal for diversion rate by 2015 • Implement the nine recommended actions • 3. Allow time for results to be achieved • 4. Re-evaluate program status • 5. Make a decision about next steps

  38. Questions?

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